Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q3 2013 Earnings Presentation
39 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2013
Slide 1: 2013 Q3 Earnings Results Presentation
2013 Q3 Earnings Results Presentation 1
Slide 2: Disclaimer Statement
Disclaimer Statement The information and opinions contained in this document have been compiled by Hacı Ömer Sabancı Holding A.Ş. (“Holding”) from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or
Slide 3: Reporting Changes in Q3 2013
Reporting Changes in Q3 2013 Companies which have a change in treatment in Sabancı Holding Combined and Consolidated Income Statements: SONRA Combined Consolidated Segment H1 Q3 Q4 H1 Q3 Q4 Energy Ayedaş X √ √ X X X Toroslar X X √ X X X Retail Diasa √ X X X X X Carrefoursa √ √ √ X √ √ 3
Slide 4: Turkey Macro Outlook Update-Q3 2013
Turkey Macro Outlook Update-Q3 2013 • Domestic demand growth was moderate in Q3 2013 compared to Q2 2013. • Based on consumer confidence and sentiment indices, private consumption spending continued to rise in Q3 2013 yet at a moderate rate. • Private investment outlook is still weak compared to con
Slide 5: 2013-2014 Expectations
2013-2014 Expectations Prior Current Current 2012 2013(E) 2013(E) 2014(E) GDP Growth, (%) 2.2 3.0 3.5 3.5 Change in CPI (%), annual 6.2 7.5 8.0 7.5 USD/TL, year end 1.783 2.030 2.04 2.21 Higher volatility in financial markets result in weaker growth expectations… 5
Slide 6: Key Takeaways
KEY TAKEAWAYS • Strong EBITDA growth in all non-bank segments SONRA • Net income exceeding last year in 9M 2013 • Increasing guidance for 2013 for cement, insurance and industrials • Proactive management and minimization of FX exposure • Acquisitions closed, focusing on execution of the integration
Slide 7: Non-Operational and Non-Recurring Items
Non-Operational and Non-Recurring Items 9M 2012 9M 2013 2012 Q3 2013 Q3 NET INCOME 1,198 1,570 479 481 Akbank Turkish Competition Board Penalty - (53) - - Income from Akbank NPL sale - 19 - - Aksigorta gain on asset sale - 38 - - Income from Diasa sale - 85 - 85 Carrefoursa Restructuring Expenses -
Slide 8: Results Snapshot
Results Snapshot High growth in operating profit Operating 31% in 9M 2013 Profit* 5.179 3.967 driven by strong -13% (Million TL) 1.403 1.224 non bank performance. 9M 2012 9M 2013 2012 Q3 2013 Q3 Robust net Net Income** 26% income 1.522 (Million TL) 1.206 -14% generation on 486 418 the non-bank 9
Slide 9: Non-bank Results-2013 9M&Q3
Non-bank Results-2013 9M&Q3 CEMENT ENERGY OTHER RETAIL INDUSTRY INSURANCE 403 393 28 -2% 42 Net Income 74 92 contribution Net Income from all 95 161 segments Breakdown 152 6% 18 excluding (Million TL)* 244 12 19 Energy 6 48 segment 223 31 15 increased in 76 110 Q3 51 -23 12 6 -31 -40 9M 2012 9M 20
Slide 10: Leverage and FX Position
Leverage and FX Position Million Euro NET FX POSITION (excl. bank) Dec 31, 2012 Sep 30, 2013 SEGMENT TOTALS ENERGY (1.700) (1.771) INDUSTRY (74) (122) CEMENT 4 24 RETAIL (10) 11 HOLDING,INSURANCE&OTHER 378 (47) TOTAL CONSOLIDATED* (209) (409) Million Euro NET DEBT / (CASH) (excl. bank & ins.) Dec 31
Slide 11: Minimizing FX exposure
Minimizing FX exposure Main Objectives: 1. In the short-term, minimizing FX exposure: • Refinancing of Euro loans with TL loans for the plants in operation:Enerjisa refinanced €85 M loans with TL loans in September. • Other businesses carrying FX position utilize operational hedging 2. In the long-t
Slide 12: Energy: Natural Hedge Through USD-linked Prices
Energy: Natural Hedge Through USD-linked Prices Electricity prices are highly correlated with USD/TL rate due to the dominant share of NGPP’s and imported coal thermal plants in generation. Electricity Generation (2012) POWER PLANT OPERATIONS IN THE DAY WITH MAXIMUM DEMAND (2012) 40000 EXPORT Natura
Slide 13: Energy
Energy TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL 9M 2012 9M 2013 % Change 9M 2012 9M 2013 % Change SALES 3.363 4.162 24% - - - EBITDA* 371 526 42% 95 (37) N.M NET INCOME** 189 (62) N.M 95 (31) N.M EBITDA MARGIN 11,0% 12,6% TOTAL BEFORE CONSO
Slide 14: Enerjisa
Enerjisa TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL 2012 Q3 2013 Q3 % Change 2012 Q3 2013 Q3 % Change SALES (NET) 1.120 1.631 46% - - - EBITDA* 130 180 39% 15 (40) N.M NET INCOME** 28 (79) N.M 15 (40) N.M EBITDA Margin (%) 11,6% 11,0% - - * E
Slide 15: Enerjisa
Enerjisa 24,000 Electricity Demand (GWh) Electricity demand 23,000 22,000 growth is stagnant 21,000 in the third quarter 20,000 19,000 18,000 17,000 January February March April May June July August September 2012 21,359 20,006 20,686 18,233 19,004 20,061 22,827 21,582 19,900 2013 21,275 18,842 20
Slide 16: Enerjisa Projects
Enerjisa Projects √ √ √ √ √ Increasing diversified asset portfolio through new investments. 16 Plants completed in 2013
Slide 17: Power Plants Completed in 2013
Power Plants Completed in 2013 BARES-143MW Dağdelen-8MW Kandil-208MW Köprü-156MW Sarıgüzel-103MW Kuşaklı-20MW Hacınınoğlu-142MW Suçatı-7MW Wind Power Plant Hydro Electric Power Plant Completed before 2013 • Ceyhan River Cascade Hydro Power plants are complete. • Enerjisa will be able to optimize the
Slide 18: Power Plants Completed in 2013
Power Plants Completed in 2013 KUŞAKLI KÖPRÜ SARIGÜZEL Installed Capacity: 20 MW Installed Capacity: 156 MW Installed Capacity: 103 MW COD Date: September 2013 COD Date: April 2013 COD Date: September 2013 KANDİL BARES Installed Capacity: 208 MW Installed Capacity: 143 MW 18 COD Date: October 2013 C
Slide 19: New Distribution Regions
New Distribution Regions Başkent EDAŞ – Overview (2012) Ayedaş – Overview (2012) Population (mn) 6.9 Population (mn) 4.8 Area (km2) 63,398 2 Area (km ) 1,869 Subscribers(mn) 3.6 Subscribers(mn) 2.5 Electricity sales (TWh) 11 Electricity sales (TWh) 7.8 Theft & Loss Rate 8.2% Covered area Istanbul An
Slide 20: Enerjisa Balance Sheet
Enerjisa Balance Sheet TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL 2012 YE 2013 Q3 % Change CASH AND CASH EQUIVALENTS 348 1.171 236% TRADE RECEIVABLES 547 687 26% OTHER CURRENT ASSETS 307 460 50% TOTAL CURRENT ASSETS 1.203 2.318 93% PROPERTY, PLANT AND EQUIPMENT 6.035 7.983 32% INTA
Slide 21: Retail
Retail TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL 9M 2012 9M 2013 % Change 9M 2012 9M 2013 % Change SALES 3.463 4.012 16% 1.577 2.813 78% EBITDA* 104 109 4% 60 74 23% NET INCOME** (5) (34) N.M 6 (4) N.M EBITDA MARGIN 3,0% 2,7% 3,8% 2,6% MILLI
Slide 22: Carrefoursa
Carrefoursa TOTAL BEFORE CONSOLIDATION ADJUSTMENTS CONTRIBUTION TO CONSOLIDATED (COMBINED) FINANCIALS MILLION TL 9M 2012 9M 2013 % Change 9M 2012 9M 2013 % Change SALES 1.887 1.878 0% - 1.878 N.M EBITDA* 41 29 -29% -1 -2 N.M NET INCOME** -3 -1 N.M -1 1 N.M EBITDA MARGIN 2,2% 1,5% N.M N.M. 2012 Q3 20
Slide 23: Teknosa
Teknosa TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) CONTRIBUTION TO CONSOLIDATED FINANCIALS MILLION TL 9M 2012 9M 2013 % Change 9M 2012 9M 2013 % Change SALES 1.579 2.141 36% 1.579 2.141 36% EBITDA 78 98 26% 78 98 26% NET INCOME 31 45 47% 31 45 47% EBITDA MARGIN 4,9% 4,6% 4,9% 4,6% 2012 Q3 201
Slide 24: Cement
Cement TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL 9M 2012 9M 2013 % Change 9M 2012 9M 2013 % Change SALES 1.423 1.614 13% 641 739 15% EBITDA* 324 388 20% 185 223 20% NET INCOME* 172 214 24% 74 92 23% EBITDA MARGIN 22,8% 24,1% 28,9% 30,1% MILL
Slide 25: Insurance
Insurance TOTAL BEFORE CONSOLIDATION ADJUSTMENTS CONTRIBUTION TO CONSOLIDATED (COMBINED) FINANCIALS MILLION TL 9M 2012 9M 2013 % Change 9M 2012 9M 2013 % Change SALES 1.142 1.322 16% - - - EBITDA* 62 146 135% 28 77 - NET INCOME** 64 95 49% 28 42 48% EBITDA MARGIN 5,4% 11,1% 2012 Q3 2013 Q3 % Change
Slide 26: Avivasa
Avivasa TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL 9M 2012 9M 2013 % Change 9M 2012 9M 2013 % Change SALES 145 178 23% - - - OPERATING INCOME 32 33 4% 18 27 45% NET INCOME 37 53 45% 18 27 45% MILLION TL 2012 Q3 2013 Q3 % Change 2012 Q3 2013 Q
Slide 27: Profit Emergence of Pension Policies
Profit Emergence of Pension Policies Typical Pension Policy - Profit Emergence* Yr 1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12 Yr 13 Yr 14 Yr 15 Yr 16 Yr 17 Yr 18 Yr 19 Yr 20 (ACQ) The policy starts generating profit in the years following the initial cost. Acquisition costs: In
Slide 28: Industrials
Industrials TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL 9M 2012 9M 2013 % Change 9M 2012 9M 2013 % Change SALES (NET) 3.990 4.227 6% 2.966 3.127 5% EBITDA* 556 646 16% 439 485 11% NET INCOME* 278 344 24% 223 244 9% EBITDA MARGIN 13,9% 15,3% 14
Slide 29: Brisa
Brisa TOTAL BEFORE CONSOLIDATION ADJUSTMENTS CONTRIBUTION TO CONSOLIDATED (COMBINED) FINANCIALS MILLION TL 9M 2012 9M 2013 % Change 9M 2012 9M 2013 % Change SALES 1,024 1,095 7% - - - EBITDA 145 219 51% - - - NET INCOME 53 109 105% 23 47 105% EBITDA MARGIN 14.2% 20.0% 2012 Q3 2013 Q3 % Change 2012 Q
Slide 30: Kordsa Global
Kordsa Global TOTAL BEFORE CONSOLIDATION ADJUSTMENTS CONTRIBUTION TO CONSOLIDATED (COMBINED) FINANCIALS MILLION TL 9M 2012 9M 2013 % Change 9M 2012 9M 2013 % Change SALES 1.153 1.140 -1% 1153 1140 -1% EBITDA 142 109 -23% 142 109 -23% NET INCOME 70 16 -77% 64 15 -77% EBITDA MARGIN 12,3% 9,6% 12,3% 9,
Slide 31: Net Sales
Net Sales TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL 9M 2012 9M 2013 % Change 9M 2012 9M 2013 % Change TOTAL 24.140 26.997 12% 15.362 17.686 15% BANK 10.148 10.965 8% 10.148 10.965 8% NON-BANK 13.992 16.032 15% 5.249 6.750 29% ENERGY 3.363 4.
Slide 32: Net Sales
Net Sales TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2012 Q3 2013 % Change 3Q 2012 3Q 2013 % Change TOTAL 8.143 9.159 12% 5.360 6.337 18% BANK 3.598 3.495 -3% 3.598 3.495 -3% NON-BANK 4.545 5.664 25% 1.773 2.853 61% ENERGY 1.120 1.631 46%
Slide 33: EBITDA (Excluding Non Operational Items)
EBITDA (EXCLUDING NON OPERATIONAL ITEMS) TOTAL BEFORE CONSOLIDATION ADJUSTMENTS CONTRIBUTION TO CONSOLIDATED FINANCIALS (COMBINED) MILLION TL 9M 2012 9M 2013 % Change 9M 2012 9M 2013 % Change TOTAL 4.389 5.978 36% 3.367 4.468 33% BANK 2.586 3.599 39% 2.586 3.599 39% NON-BANK 1.803 2.380 32% 793 816
Slide 34: EBITDA (Excluding Non Operational Items)
EBITDA (EXCLUDING NON OPERATIONAL ITEMS) TOTAL BEFORE CONSOLIDATION ADJUSTMENTS CONTRIBUTION TO CONSOLIDATED FINANCIALS (COMBINED) MILLION TL 3Q 2012 3Q 2013 % Change 3Q 2012 3Q 2013 % Change TOTAL 1.601 1.489 -7% 1.370 1.168 -15% BANK 1.074 835 -22% 1.074 835 -22% NON-BANK 527 654 24% 280 346 24% E
Slide 35: Organic Growth / Investments (Million TL)
Organic Growth / Investments (Million TL) %42 2.678 1.880 9M 2012 9M 2013 Our investments are accelarating 1% 9M 2012 9M 2013 5% 3% 6% 4% 5% Bank 7% Insurance 4% 15% Industrials Cement Energy 69% Retail 78% Other 35
Slide 36: Upcoming IR Events
Upcoming IR Events • Retail Day : December 12 • Sabancı Holding Analyst Day: December • Until the end of the year Sabancı IR and Executives will attend:2 conferences in Turkey and New York. • Roadshows in 5 cities incl. Frankfurt, Geneva, Milan, Toronto and San Francisco 36
Slide 37: 2013 Update
2013 Update 37
Slide 38: 2013 Combined Guidance
2013 Combined Guidance Sales EBITDA Energy* ~ + 10-15% ~ +30-35% Cement ~ + 10-15% ~ + 10-15% Retail ~ + 15% ~ 0-5% Insurance ~ +15-20% ~ +50-55% Industrials ~ +10% ~ +20% * Excluding the new distribution regions 38
Slide 39: Q&A
Q&A 39
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